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Monday, June 7, 2010

Google Reveals Revenue Shares For Its AdSense Network

Google on Tuesday unveiled the revenue shares for its AdSense products, revealing that AdSense for content publishers take home 68 percent of revenue, while AdSense for search participants earn 51 percent of earned revenue.

Google said it was sharing the information "in the spirit of greater transparency."

"AdSense for content publishers, who make up the vast majority of our AdSense publishers, earn a 68 percent revenue share worldwide," Neal Mohan, vice president of product management at Google, wrote in a blog post."This means we pay 68 percent of the revenue that we collect from advertisers for AdSense for content ads that appear on your sites. The remaining portion that we keep reflects Google's costs for our continued investment in AdSense — including the development of new technologies, products and features that help maximize the earnings you generate from these ads."

On the search front, publishers keep 51 percent. "As with AdSense for content, the proportion of revenue that we keep reflects our costs, including the significant expense, research and development involved in building and enhancing our core search and AdWords technologies," Mohan wrote.

The content revenue shares have remain unchanged since its 2003 launch. Search policies have been in place since 2005, when Google increased it.

The news comes several days after the Federal Trade Commission closed its investigation of Google's purchase of online advertising network AdMob.

The agency conceded that the Google-AdMob tie-up does raise "serious antitrust issues" on its own. But Apple's January purchase of the Quattro Wireless mobile ad network and the launch of its iAd network, as well as other companies' efforts to develop or acquire smartphone platforms to compete against the iPhone and Android operating systems will provide Google with a "strong incentive to facilitate competition among mobile advertising networks," the FTC said.

The FTC pledged to continue monitoring the mobile ad space to ensure that antitrust issues do not crop up.

Apple's iAd network, which the company introduced in April, keeps 40 percent of all ad revenue, leaving the remaining 60 percent to the developer.

Google declined to disclose the revenue sharing arrangements for its mobile applications, AdSense for feeds, and AdSense for gamers because "they're quickly evolving, and we're still learning about the costs associated with supporting them," Mohan wrote.

The evolving costs associated with all AdSense programs means that Google "can't guarantee that the revenue share will never change, but we don't have any plans to do so for any AdSense product," he said.

Earlier today, Google also released a study that assessed the company's economic impact in all 50 states. Overall, Google generated $54 billion of economic activity in 2009, the company said. For more details, Google has broken down that impact on a state-by-state basis at google.com/economicimpact.